Our series of Real World Scenarios continues with a future inheritant's question regarding their father's death benefit annuity.
My elderly father has an annuity. When he passes away, will I be taxed only on the gain, or will I be taxed on the entire amount?
If your father dies his heirs are taxed on everything above his initial cost basis. For example, if he initially invested $100,000 in a non-qualified plan that has grown to $250,000 by the time of his death, you... Read More